Factors Responsible for Cadbury Success

sunandaC

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Factors Responsible for Cadbury Success

1. Extensive distribution network

Cadbury’s brands are available in over a million outlets across the country. The distribution network directly covers almost the entire urban population. The company has invested significantly in building such an extensive network.

The company uses Information Technology to improve its logistics and distribution competitiveness. Cadbury has improved the distribution quality of its products with the installation of refrigerators at several outlets.


This helps in maintaining product quality in summer, when sales usually dip due to the fact that the heat affects product quality and thereby consumption.

2. Creation of strong brands

Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India.

The company has built strong brand equity through consistently high product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasis in ensuring display dominance at the point of purchase

3. Customization of products for India

Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian markets.

It also offers products at affordable price points so as to increase its market penetration.

4. Leveraging the India Advantages

Though, India contributes to less than 5 per cent of the global revenues today, India is critical to the global strategy of the company

5. Managerial Talent

Cadbury has begun recruiting management graduates in India to serve its global operations.


6. Huge market potential

India offers huge market potential and is a priority market for Cadbury. The company also leverages India as a manufacturing base for producing products for the overseas market.

Cadbury India has 4 company owned factories and as many third party manufacturing contractors. It also has a wide Sales & Distribution infrastructure consisting of 33 depots managed by 4 regional sales branches across India.
 
According to me, Cadbury success has only one factor is their advertising strategy. They have impeccable advertising strategy and when they have Amitabh Bachchan as brand ambassador then its effectiveness is at peak. they connect with their target audience at base level and not only that they use normal people more in their advertising to generate familiarity.
 
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